Motion to Avoid Creditor's Lien
Overview of this form
The Motion to Avoid Creditor's Lien is a legal document used by debtors in bankruptcy proceedings to request the court to eliminate a judicial lien imposed by a creditor. This form allows a debtor to potentially regain ownership of their property that is affected by an unsatisfied debt, and it is typically employed during Chapter 7 or Chapter 13 bankruptcy. Unlike other bankruptcy forms that address different aspects of debt relief, this specific motion is focused on the removal of liens that impair the debtor’s ability to claim exemptions on their property.
Form components explained
- Name of the debtor and case number.
- Description of the property affected by the lien.
- Details of the creditor holding the lien.
- Valuation of the property and specified exemptions.
- A calculation to determine if the lien impairs the debtor's exemptions.
- Request for the court to avoid the lien and any related equitable relief.
State-specific requirements
This form is a general form that can be adapted for use in different states. Since each state has its own laws, make any needed updates before completing it.
When this form is needed
This form should be used when a debtor has filed for bankruptcy and wishes to challenge a judicial lien placed on their property by a creditor. It is particularly relevant in scenarios where the debtor seeks to eliminate a lien that restricts their ability to effectively manage their assets or claim necessary exemptions under bankruptcy law, especially when the value of the lien exceeds the value of the exemption the debtor is entitled to claim.
Intended users of this form
- Individuals or businesses that have filed for Chapter 7 or Chapter 13 bankruptcy.
- Debtors who have judicial liens placed on their property by creditors.
- Anyone seeking to remove or avoid a lien that impairs their ability to utilize exemptions.
- Those who are currently facing financial distress and have unresolved debts associated with judicial liens.
How to complete this form
- Input the name of the district and debtor.
- Describe the property subject to the lien accurately.
- Provide specific details regarding the creditor and the associated judgment.
- Calculate the exemption and property values according to the guidelines set by the bankruptcy code.
- Submit the completed form to the appropriate court along with any required fees and supporting documents.
Notarization guidance
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
Common mistakes
- Failing to accurately describe the property affected by the lien.
- Not providing sufficient evidence to support the calculations of property value and exemption.
- Omitting necessary court information or filing deadlines.
- Incorrectly identifying the creditor or the details of the judgment.
Why complete this form online
- Convenience of filling out and downloading the form from anywhere at any time.
- Editability allows users to customize the form to match their specific details and circumstances.
- Access to forms drafted by licensed attorneys, ensuring compliance with legal standards.
Legal use & context
- This form is used under the jurisdiction of bankruptcy courts to seek relief from judicial liens.
- Filing this motion can help protect a debtor's exempt property from seizure.
- Debtors should ensure that all claims made in the form are supported by relevant legal statutes and evidence to avoid delays or denials in court.
Form popularity
FAQ
In order to vacate a judgment in California, You must file a motion with the court asking the judge to vacate or set aside the judgment. Among other things, you must tell the judge why you did not respond to the lawsuit (this can be done by written declaration).
If your attorney is aware of the judicial lien(s) and you do not have any non-exempt equity in property to secure the liens, your attorney can file a motion to avoid a judicial lien to prevent the judicial lien from affecting you in the future after the debt was discharge in your bankruptcy.
Once a judgment is paid, whether in installments or a lump sum, a judgment creditor (the person who won the case) must acknowledge that the judgment has been paid by filing a Satisfaction of Judgment form with the court clerk.
Judgments are no longer factored into credit scores, though they are still public record and can still impact your ability to qualify for credit or loans.You should pay legitimate judgments and dispute inaccurate judgments to ensure these do not affect your finances unduly.
Make sure the debt the lien represents is valid. Pay off the debt. Fill out a release-of-lien form. Have the lien holder sign the release-of-lien form in front of a notary. File the lien release form. Ask for a lien waiver, if appropriate. Keep a copy.
Contact the creditor that filed the lien. Make payment arrangements if you cannot pay in full. Pay the lien amount in full or as agreed. Request a satisfaction of lien. File the satisfaction of lien if mailed to you. Consult a bankruptcy attorney.
If the judgment creditor does not immediately file an Acknowledgement of Satisfaction of Judgment (EJ-100) when the judgment is satisfied, the judgment debtor may make a formal written demand for the creditor to do so. The judgment creditor has 15 days after receiving the debtor's request to serve the acknowledgement.
There are a few ways you can satisfy or avoid a lien altogether. The firstand most obviousoption is to repay the debt. If you pay off your obligation, the creditor will remove the lien. This is done by filing a release through the same place the lien was recordedthe county or state.
To remove a lien you have to pay the judgment and get the judgment creditor to complete a notarized Acknowledgment of Satisfaction of Judgment (EJ-100). Either party can eFile the form to the court. Then the judgment creditor or you have to record a certified copy of this form in the county where the property is.
